Asset protection is basically the process of arranging your affairs so that a potential creditor would have a harder time enforcing a judgement against you. There are many myths and false information about asset protection, so let me dispel the major one now – THERE IS NO “FORTRESS” OR “BULLET – PROOF” METHOD OF PROTECTING YOUR ASSETS! If there were such a thing, everybody would do it!
Notwithstanding the absence of a magic structure or process that takes care of all asset protection issues, there are many techniques that can be helpful in protecting yourself from lawsuits, collections, garnishments, etc; HOWEVER, to be most effective these strategies must be employed well in advance of a problem.
Some strategies that work (depending on your specific situation):
Post-Nuptial Agreements (Transmutes community property to separate property)
Irrevocable Discretionary Trusts
Limited Liability Companies
Personal Residence Trusts
Also, there are statutory exemptions that can be taken advantage of, such as homestead laws, annuities, ERISA qualifed and private retirement plans, and bankruptcy.
If you are very concerned about asset protection, please contact us for a complementary consultation. All asset protection plans are designed specifically to address the unique needs of each client.